Vietnam, Canada hold first session of the Joint Economic Committee

The primary purpose of the meeting is to deepen the comprehensive partnership that exists between both sides, with the move expected to contribute to taking the bilateral economic relationship to new heights.

Deputy Minister Hai noted that the meeting is part of the combined efforts to celebrate the fifth anniversary of the Comprehensive Partnership which began in 2017 ahead of the 50th anniversary of their diplomatic ties which started back in 1973.

Sharing this view, Canadian Deputy Minister Morrison assessed that the first meeting opened a new chapter in terms of bilateral economic co-operation.

Immediately before the first session, an exchange was held between Deputy Minister Hai and Canadian Minister of International Trade, Export Promotion, Small Business and Economic Development Mary Ng.

Deputy Minister Hai highlighted Canada as an important market for the nation in North America, as well as the Americas in general, stating his hope that the two sides could take full advantage of the potential and advantages. This can be done to create favourable conditions for each country's goods to enter each other's markets, as well as to other markets throughout the region.

Canadian Minister Ng displayed her elation and warm welcome to the Vietnamese delegation who came to participate in the first session of the JEC and other activities aimed at connecting firms from both sides. This is along with seeking to fulfil the terms of the Memorandum of Understanding signed by the Ministry of Industry and Trade of Vietnam and the Ministry of Global Affairs (GAC) on January 11.

Furthermore, the committee will serve as a practical mechanism for the two sides to hold specific dialogues and jointly devise solutions to strengthen co-operation, especially in the fields of trade and investment. 

During the course of first session, the two sides discussed challenges and opportunities relating to bilateral trade and investment in the context numerous economic and political uncertainties internationally, as well as global supply chain shifting trends, market diversification strategies, and economic recovery after the COVID-19 pandemic.

Deputy Minister Morrison emphasized that Canada places great importance on its relationship with Vietnam, viewing the nation as a long-standing partner. Indeed, since 2015 the country has maintained its position as Canada's largest trading partner in ASEAN.

The bilateral trade relationship continued to grow during the COVID-19 pandemic, with two-way trade turnover hitting a record high of CAD10.5 billion in 2021.

The Canadian Deputy Minister affirmed that the establishment of the JEC demonstrates Ottawa's willingness to strengthen and seek to diversify economic links with key partners in the Indo-Pacific region.

As a result of this attitude, the Northern American nation looks forward to deepening its economic relationship with Vietnam through this new mechanism which is in line with Ottawa's commitment to increasing engagement in the Indo-Pacific region, with ASEAN serving as the centre.

Both sides have enjoyed strong growth in terms of bilateral trade and investment since the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), despite the negative impacts caused by the global pandemic.

Trade exchange between the two sides have soared by more than 60% since the agreement was first enforced in 2019. The agreement has contributed to creating great opportunities for Canadian products in the Vietnamese market, especially in the field of food processing and seafood.

Vietnamese access to the Canadian market has also increased, with the nation exporting a record CAD9.8 billion worth of goods to the North American nation in 2021.

However, bilateral ties in trade-investment remain far below the two nations’  full potential and should continue be promoted moving forward.

Vietnam and Canada therefore agreed to make joint efforts to diversify and expand trade by facilitating the greater export of goods and services whilst seeking to promote investment flows between the two sides.

According to the co-operation agreement on the establishment of the JEC, meetings will be held alternately every two years.

Despite this agreement, due to the necessity of promoting the development of economic relations between the two countries in the current context, the two sides have agreed to hold the second meeting in 2023 in Vietnam.